Vancouver, British Columbia: Kootenay Silver Inc. (TSX VENTURE: KTN.V) is pleased to announce results from an additional 11 holes from its ongoing 30,000 meter, multi-phase drill and resource expansion program on its flagship Promontorio Silver Project in Sonora, Mexico. The holes are step out and exploratory holes testing 3 different target areas. Included is the extension of the Pit resource to the southwest and west, the Farm EM zone to the north and the Farm EM zone to the south.

Highlights Include:

Farm EM Zone

Discovery of a new oxide zone of mineralization 350 to 400 meters to the southwest of the Pit Resource. Drilling intercepted 3 separate intervals in the new zone, including DH 135, which returned 104 gpt Silver Eqv (81 gpt Ag and 0.97% Pb+Zn) over 10 meters, including 3 meters grading 246 gpt Silver Eqv (176 gpt Ag and 3.04% Pb+Zn)

States Kootenay CEO James McDonald "We are very pleased with results from step-out drilling. Assays returned a series of encouraging intercepts from a newly discovered mineralized zone in the Farm EM target area, which sits over 350 meters to the southwest of the Pit resource and remains open in several directions. Additionally, mineralization in the Pit resource continues to open up to the north and west. Ongoing drilling and technical analysis will continue to focus on delineating the extent of mineralization in the Pit area and on determining the geometry of the new zone and its relation to the Pit Resource mineralization."

Table of the full results follows:

13-March-13 News Release

Hole ID

Target

From

To

Interval

*AgEq (Ag,Pb,Zn)

Ag

Pb

Zn

Pb+Zn

(m)

(m)

(m)

(gpt)

(gpt)

(%)

(%)

(%)

DH-129-13

North of Pit

283

287

4

57

33

0.39

0.63

1.02

DH-129-13

North of Pit

319

379

60

58

31

0.58

0.6

1.18

including

North of Pit

354

376

22

96

50

1.01

0.96

1.96

DH-135-13

Farmhouse EM

40

54

14

39

37

0.06

0.03

0.08

DH-135-13

Farmhouse EM

63

72

9

50

45

0.06

0.13

0.19

DH-135-13

Farmhouse EM

83

93

10

104

81

0.59

0.38

0.97

including

Farmhouse EM

86

89

3

246

176

1.87

1.17

3.04

DH-136-13

Farmhouse EM

266

268

2

132

66

1.04

1.85

2.89

DH-137-13

North of Pit

234

255

21

39

22

0.31

0.4

0.72

DH-137-13

North of Pit

283

298

15

52

31

0.45

0.46

0.91

DH-137-13

North of Pit

337

344

7

33

17

0.32

0.41

0.73

DH-140-13

Farmhouse EM

19

28

9

47

33

0.01

0.59

0.60

Holes 130 to 134, 138 and 139 contained no significant results or only anomalous values. All holes displayed alterationand were within the mineral system. DH 133 was stopped short of the projected mineralization in DH 129.

In addition to the Ag, Pb, Zn results returned from drilling, the following gold grades detailed in the chart below were also encountered. Recent metallurgical and oxidation testing has shown that there is potential to recover gold in the Promontorio system through an oxidation process. As a result, the gold is now being reported in a separate table. While additional technical work is required to further assess the logistics and economic viability of this process and how it pertains to the Promontorio resource, the Company feels at this time that it is prudent to begin recognizing the gold component of the resource as a potential future benefit. Additional technical and metallurgical testing on the gold is underway and will be reported once received.

Table 2 Showing Results with Gold Assays Included:

13-March-13News Release

Hole ID

Target

From

To

Interval

*AgEq (Ag,Au,Pb,Zn)

Ag

Au

Pb

Zn

Pb+Zn

(m)

(m)

(m)

(gpt)

(gpt)

(gpt)

(%)

(%)

(%)

DH-129-13

North of Pit

283.00

287.00

4

94

33

0.73

0.39

0.63

1.02

DH-129-13

North of Pit

319.00

379.00

60

81

31

0.45

0.58

0.60

1.18

including

North of Pit

354.00

376.00

22

132

50

0.71

1.01

0.96

1.96

DH-135-13

Farmhouse EM

40.00

54.00

14

40

37

0.02

0.06

0.03

0.08

DH-135-13

Farmhouse EM

63.00

72.00

9

52

45

0.05

0.06

0.13

0.19

DH-135-13

Farmhouse EM

83.00

93.00

10

113

81

0.17

0.59

0.38

0.97

including

Farmhouse EM

86.00

89.00

3

274

176

0.54

1.87

1.17

3.04

DH-136-13

Farmhouse EM

266.00

268.00

2

144

66

0.23

1.04

1.85

2.89

DH-137-13

North of Pit

234.00

255.00

21

57

22

0.35

0.31

0.40

0.72

DH-137-13

North of Pit

283.00

298.00

15

86

31

0.65

0.45

0.46

0.91

DH-137-13

North of Pit

337.00

344.00

7

51

17

0.34

0.32

0.41

0.73

DH-140-13

Farmhouse EM

19.00

28.00

9

79

33

0.63

0.01

0.59

0.60

29-Jan-13News Release

Hole ID

Target

From

To

Interval

*AgEq (Ag,Au,Pb,Zn)

Ag

Au

Pb

Zn

Pb+Zn

(m)

(m)

(m)

(gpt)

(gpt)

(gpt)

(%)

(%)

(%)

DH-121-12

NE Zone

149.00

169.00

20

53

19

0.38

0.28

0.33

0.62

including

NE Zone

154.00

155.00

1

320

111

2.81

1.52

1.28

2.80

DH-121-12

NE Zone

182.00

187.00

5

59

19

0.50

0.28

0.35

0.62

DH-121-12

NE Zone

249.00

253.00

4

142

43

1.39

0.47

0.74

1.21

DH-121-12

NE Zone

324.00

327.00

3

103

84

0.22

0.05

0.29

0.34

DH-121-12

NE Zone

484.00

531.00

47

74

31

0.23

0.67

0.66

1.32

including

NE Zone

504.00

521.00

17

111

48

0.32

1.02

0.98

2.00

DH-122-12

NE Zone

132.00

136.00

4

43

19

0.11

0.75

0.04

0.78

DH-122-12

NE Zone

264.00

270.00

6

74

33

0.29

0.53

0.59

1.12

DH-123-12

NE Zone

268.00

273.00

5

53

27

0.35

0.29

0.03

0.32

DH-123-12

NE Zone

316.00

322.00

6

173

34

1.72

1.34

0.82

2.16

DH-124-12

NE Zone

318.00

323.00

5

224

89

1.39

1.29

1.45

2.74

DH-124-12

NE Zone

338.00

342.00

4

60

25

0.24

0.35

0.61

0.97

DH-124-12

NE Zone

348.00

376.00

28

54

18

0.31

0.43

0.46

0.89

including

NE Zone

357.00

363.00

6

108

36

0.55

1.00

0.88

1.89

DH-124-12

NE Zone

385.00

405.00

20

53

19

0.33

0.40

0.34

0.73

including

NE Zone

387.00

390.00

3

208

74

1.53

1.39

1.00

2.40

DH-125-12

NE Zone

131.00

137.00

6

142

106

0.44

0.32

0.27

0.59

DH-125-12

NE Zone

324.00

327.00

3

69

44

0.20

0.36

0.27

0.63

DH-125-12

NE Zone

342.00

351.00

9

142

31

1.79

0.48

0.35

0.83

DH-125-12

NE Zone

376.00

390.00

14

147

59

1.04

0.74

0.76

1.50

including

NE Zone

380.00

383.00

3

310

129

2.15

1.58

1.47

3.06

DH-126-12

NE Zone

89.00

90.00

1

547

491

0.42

0.69

0.79

1.48

At present, three core drills are operating on Promontorio. One rig is currently operating in the Dorotea Zone, a second rig is drilling the Pit Resource northern extension area and a third rig is drilling the new discovery area in the Farm EM zone.

The current 30,000 meter, multi-phase drill and resource expansion program is the largest single drill campaign conducted on Promontorio to date.

The foregoing geological disclosure has also been reviewed and verified by Kootenay's CEO, James McDonald, P.Geo (a qualified person for the purpose of National Instrument 43-101, Standards of Disclosure for Mineral Projects). Mr. McDonald is a director of Kootenay.

ABOUT KOOTENAY

Kootenay Silver Inc. is actively developing mineral projects in the Sierra Madre Region of Mexico and in British Columbia, Canada. Its flagship property is the former producing Promontorio Silver mine in Sonora State, Mexico. Kootenay's objective is to develop near term discoveries and long-term sustainable growth. Its management and technical team are proven professionals with extensive international experience in all aspects of mineral exploration, operations and venture capital markets. Multiple, ongoing J/V partnerships in Mexico and Canada maximize potential for additional, new discoveries while maintaining minimal share dilution.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or the accuracy of this release.Cautionary Note to US Investors: This news release may contain information about adjacent properties on which we have no right to explore or mine. We advise U.S. investors that the SEC's mining guidelines strictly prohibit information of this type in documents filed with the SEC. U.S. investors are cautioned that mineral deposits on adjacent properties are not indicative of mineral deposits on our properties. This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.

This press release uses the terms "Measured", "Indicated", and "Inferred" resources. United States investors are advised that while such terms are recognized and required by Canadian regulations, the United States Securities and Exchange Commission does not recognize them. "Inferred Mineral Resources" have a great amount of uncertainty as to their existence, and as to their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or other economic studies. United States investors are cautioned not to assume that all or any part of Measured or Indicated Mineral Resources will ever be converted into Mineral Reserves. United States investors are also cautioned not to assume that all or any part of a Mineral Resource is economically or legally mineable.